Re: Reality of the Mgt Incentive Plan and the DIP motion
posted on
Mar 23, 2012 11:18AM
Didn't long ago that just on the date of filing CCAA we thought the CVR is 49%?
35%+10% =45%. We saved 4%, is it?
But I hate the clause that after first 700m, it will be only 2% to management.
I think most likely situation is a settlement or buyout because the Chinese is running on their clock too,
but the incentives to get a settlement above 700m is just imbalance to imbalance to the incentives under 700m. That leads me to believe that management and/or tenor is looking at the 700m figure valuation of this arbitration.
10% interest to keep management in the game I think is a very fair game. We have to pay for them to stick here. And sorry, that causes money for sure. But i would hope the % after 700m to management will increase to 15% rather than decrease to 2% because it gives them more incentives for a better settlement target.